Stock calls by HDFC Securities for today: Buy Wipro, PFC

Nifty outlook and technical calls by Vinay Rajani, Senior Technical Analyst at HDFC Securities

Nifty View

The recent bottom of 10004 in Nifty seems to have become short-term bottom for the Nifty, as oscillators have been showing strength while markets were dragging down during last week. Nifty bounced back sharply after taking support at its 100-week moving average, placed at 10000 odd levels.  There has been a development of positive divergence on the Daily RSI Indicator, where Nifty has formed a new bottom and RSI has made a higher bottom. This setup indicates that though Nifty fell in the previous week, selling momentum went down as compared to previous days. This could result into bullish trend reversal for the Nifty for the Short-term. Upside Targets for Nifty are seen at 10380 and 10600. It would be advisable to cut shorts and initiate fresh longs in Nifty with a stop-loss of 10004.

Buy PFC 

CMP: Rs 91.55

Target: Rs 104 

Stop-loss: Rs 84

The stock price has surpassed the crucial resistance of 200 DMA, placed at 89. The volumes have been significantly higher along with the price rise. Stock has also surpassed the multiple top resistances placed at 90 on the weekly chart. Power and Power finance sector have witnessed momentum buying in the last couple of sessions. Oscillators have also turned bullish on the daily and weekly charts.

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of Rs 104, keeping the stop loss at 84 on closing basis.

Buy WIPRO 

CMP: Rs 327.50 

Target: Rs 370 

Stop-loss: Rs 310

Stock price has broken out from the downward sloping channel on the daily charts. The stock remained resilient in the falling markets. Stock has been hovering around its 52 weeks highs. Any level above 339 would result into fresh breakout for the medium to long-term. However, the way price is behaving, the kind of setup oscillators are holding, there are good chances that Stock would appreciate further from the current levels.

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of 370, keeping the stop loss at 310 on closing basis.

Disclaimer: The analyst may have positions in any or all the stocks mentioned above.